Downing Street has accused Argentina of pursuing a policy of confrontation over the Falkland Islands, after reports suggested the South American state's government was calling on companies to stop importing goods from the UK.

David Cameron's official spokesman said on Wednesday the Argentinian move was counter-productive and amounted to a misreading of British resolve over the disputed islands. The Foreign Office is raising the issue with the Argentinian embassy.

The Argentinian state news agency Telam reported on Wednesday that the industry minister Debora Giorgi had called on the country's top companies to replace imports from the UK with goods produced elsewhere.

Her initiative marks the latest escalation of the confrontation over the islands as the 30th anniversary of the Falklands war approaches.

Buenos Aires has complained to the United Nations of British "militarisation" of the south Atlantic, following the deployment of a new Royal Navy warship to the Falklands, as well as the Duke of Cambridge's tour of duty as an air-sea rescue pilot on the islands.

On Monday, two cruise ships were turned back from the Argentinian port of Ushuaia, apparently because they had visited the Falklands.

Asked about the reported plan to block British imports, Cameron's spokesman told reporters at a regular media briefing in Westminster: "It is clearly very sad that Argentina continues with their policy of confrontation instead of co-operation.

"We think that is counter-productive and also a complete misreading of Britain's resolve on this issue.

"The UK is also a major investor in Argentina and we import goods from Argentina. It is not in Argentina's economic interest to put up barriers of this sort.

"The right approach here is one of co-operation, not confrontation."

The Argentinian charge d'affaires was summoned to the Foreign Office this afternoon.

A Foreign Office spokesman said: "We have raised our concerns with the Argentine charge in London this afternoon, who will report back to Buenos Aires for urgent clarification.

"We made clear that such actions against legitimate commercial activity were a matter of concern not just for the UK, but for the EU as a whole, and that we expect the EU to lodge similar concerns with Argentine authorities."

The Conservative MEP Nirj Deva said a multimillion-pound EU aid programme to help Argentina should be halted until the country stops "threatening" Britain over the Falklands.

Deva confronted the EU foreign policy chief Catherine Ashton over what he called a "potty" scheme which is partly paid for by Britain itself.

Through its EU budget contributions, the UK is funding nearly £7m of the £64m EU development funding arrangement launched in 2007 and due to run until 2013, said Deva, the south-east region MEP, who is vice-chairman of the European parliament's development committee.

During questions to Ashton at a committee meeting in Brussels he asked: "Why is EU aid being sent at the same time Argentina is sabre-rattling and threatening the UK over the Falklands? Can you please have a look at this?

"Why are we giving money to the Argentines that they may use to attack the Falkland Islands? It is potty, dotty and mad."

Ashton said EU aid schemes for Argentina were part of financial programmes supporting education and "people at the poorest end of the spectrum", insisting: "That is always something we have to keep in mind, whatever else is going on."